One Explanation That Economists Offer to Explain Why a Decline

question 21

Multiple Choice

One explanation that economists offer to explain why a decline in the unemployment rate can raise the rate of inflation is that

• A) firms will be put in a position of competing more intensely for scarce resources.
• B) people will pay higher prices because competition among suppliers intensifies.
• C) workers will focus more directly on protecting their jobs.
• D) firms will refuse to shift higher labour costs along to consumers for fear of losing their markets.

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Definitions:

Empirical

Based on, concerned with, or verifiable by observation or experience rather than theory or pure logic.

Variables

Elements, factors, or conditions that can change and potentially influence outcomes in experimental or statistical contexts.

Causes

The reasons or factors that lead to certain effects, outcomes, or states of being.

Scientifically Innovative

Describes novel approaches, tools, or findings that significantly advance understanding or practices within the scientific field.